The claycourt event in Hamburg is one of the final tune-ups before the French Open begins May 25.
Youzhny was ousted in the first round by Fernando Verdasco 6-3, 6-2 with Verdasco dominating. He broke Youzhny's serve four times in the romp.
No. 14-seeded Jo-Wilfried Tsonga started off as though he was going to join Youzhny as he lost the first set without winning a game. But he pulled out the second set in a tiebreaker and was sharp in the third for a 0-6, 7-6 (7-5), 6-2 win.
Also Monday, Michael Llodra beat Argentine Guillermo Canas 7-6 (9-7), 6-2 and Albert Montanes dismissed Mardy Fish 6-1, 6-3. Other wins were turned in by Ivo Minar, Simone Bolelli, Juan Ignacio Chela and Olivier Rochus.
McPhee, Cokas 'working on their marriage' after affair
LGBT community has 'bullied the American people': Bachmann